The slowdown in global economic growth, the decline of the demographic dividend, and the increasingly fierce business competition ......At present, many enterprises are still confused about how to trigger the "growth" restart button.
They need to pause, return to the essence of business management, and face the test of long-termism. To achieve long-termism, Jiang Nanchun believes that what enterprises need is a long-term strategic vision, survival wisdom to adapt to the environment, and a value-driven growth model.
Strategy: Do something, don't do something.
1.Strategy is all about differentiating your business and products in the minds of potential customers.
There are three principles for defining strategic objectives:
1) First determine that your goals are realistic and feasible;
2) Under the conditions of relatively limited resources, at a time, there can be only one main strategic goal;
3) The short-sightedness of strategy will definitely bring short-term behavior of quick success and quick profit, and blindly chasing short-term goals will become speculators, and it is difficult to go long-term even if you work hard. Feasibility is the primary criterion of strategic goals, and it is important not to chase multiple strategic goals at the same time, and to stay away from the traps of short-term goals.
2.The so-called strategy is to do something and not to do something.
Less is gained, more is confused. The company's strategic competitiveness can not be consumed at non-strategic opportunities, and only by continuing to focus on the main channel, doing something and not doing something, can we continuously enhance the company's core competitiveness.
What is the main channel?It is difficult for others to replace, and it can be copied and used in large quantities, it is called the main channel. Only by knowing how to "strategize" can the strategy be focused and competitive.
3.Strategy must know how to "strategize" and know how to sacrifice in order to have it steadily.
Strategy is not what the company wants to do, but what the company insists on not doing. Don't try to have a full product line, don't cover a variety of target markets, don't try to attract every type of customer, don't try to follow every trend and outlet, and don't consume the company's strategic competitiveness at non-strategic opportunities.
4.Strategy is not "spoken", but "made".
Strategy itself is not capability, but ability to implement strategy and effectively execute it. There is only strategic planning, and there is no operation to cooperate with it, and strategy becomes a slogan. Enterprises must not only shout slogans, but also keep up with actions, and even more so with investment. Speed itself is a kind of **, and the real purpose of strategy is to act immediately.
5.Strategy Trilogy: Break the Game – All In.
Sun Tzu's Art of War says: "The disease of the rushing water, as for the drifter, the momentum is also." "Turbulent water can wash boulders away, that's the power of power. "The disease of the bird, as for the destroyer, the festival also. "The falcon is so fast that it can kill the birds, and it depends on the timing and distance of the attack.
Therefore, those who are good at fighting pay attention to "choosing the right time to take the situation" and amplify the efficiency of resources. ** It is to judge the general trend of the industry, to break the situation is to find a key opportunity, and all in is to invest resources in full force.
6.Most of the right ones are difficult, and most of the easy ones are wrong.
The easier things are, the more things that seem like shortcuts, are essentially strategically lazy. Enterprises that take shortcuts and go fast will eventually make up for their shortcomings. Businesses should focus their resources and energy on the hard but right things instead of picking up a bunch of sesame seeds around.
7.The tactic is to solve the present, focusing on the stock;Strategy is to create the future, with an eye to incrementality.
Amazon founder Jeff Bezos said, "If you think about what you're going to do in the coming year, you immediately think of a lot of competitors. If you think about what you're going to do in three years, you'll find that you'll have far fewer opponents. If you're thinking about what you're going to do in five, seven, or even ten years, you can't remember who your opponent is. ”
If you are obsessed with tactical effort, you will get stuck in a dead loop, and all actions are in the moment. Don't mask strategic laziness with tactical diligence.
Successful businesses win on trends.
8.Drucker believes that entrepreneurs are not about management, but about grasping future trends.
The biggest challenge for entrepreneurs is to make the right judgment between the definite present and the uncertain future. It is important to distinguish between what is trending and what is trending.
9.In an uncertain environment, creating the future is more important than the future.
Environment is one of the biggest variables of strategy, and in a dynamic market environment, strategic intent must be well thought out and always the same. At the same time, it is also necessary to maintain insight into the changes in the situation, grasp opportunities in changes, and create opportunities in uncertainties. As soon as the opportunity arises, it is necessary to decisively invest strong resources in the chosen direction and open up the situation in one fell swoop.
10.Forget about short-term hotspots and grasp long-term trends.
Hot spots are like waves in the ocean, while trends are the tides in the ocean. Hot topics always get hype, and trends rarely go unnoticed. Hot spots are visible, coming and going like waves;Trends, on the other hand, are like a tidal wave, and their power will persist for a long time.
11.Don't cling to the flow, but to the mind.
Why are most influencer brands short-lived?The core reason is that they are heavy on trends and light on trends. A new brand with development potential must be in line with the general trend and be able to pass through the cycle of consumer preference, rather than catering to the current trend and fashion. The life cycle of a new category built on trends is very short.
12.What is uncertain is the environment, what is certain is your competitiveness and resilience.
Differentiation is accelerating in many industries, and brand concentration will rise significantly. In a competitive environment, there will always be ambitious companies that take one step ahead to seize the market, build brands, and occupy share.
Drive growth through value creation.
13.Growth is to create differentiated value from the perspective of users, and continuously accumulate and accumulate value.
If a company is held hostage by the expectation of growth, it is easy to fall into a vicious circle, or blindly follow the opponent without doing pioneering things, or calculate its own pros and cons without paying attention to users, or blindly capture resources and traffic instead of accumulating value, which will make the enterprise farther and farther away from growth.
14.The only way to overcome growth anxiety is to switch the perspective of growth to that of value creation.
Many enterprises are immersed in the idea of optimizing efficiency, seizing traffic, and completing growth, constantly developing products, researching traffic, optimizing organizations, and improving capabilities, but it is difficult to achieve breakthroughs, and they have been hovering in place, as if they have entered a growth bottleneck, and the more they want to grow, the farther away from the desired growth.
15.There are three types of growth that businesses need to identify:
Growth that is in line with and reinforces the brand positioning, which is muscular growth;
The growth that deviates from the brand positioning and makes the brand move forward is a fatty growth;
Growth that destroys brand positioning will make the company lose its raison d'être and is a tumor type of growth.
16.The most dangerous mistake a business makes is to mistake "getting fat" for growth.
What businesses need is muscle growth to gain active or preferred choice from customers.
17.The growth of enterprises should change from quantity to quality, and brand marketing should change from traffic to constant quantity, and the core lies in focus, focus, and refocus.
Focus on core products and reduce long-tail products, because core products can contribute more than 90% of revenue;Focus on brand value, reduce ** and traffic dependence, and accumulate brands to enjoy the compound interest of time;Focus on changing customer behavior, reduce ineffective delivery, and penetrate the core and core groups with high frequency to drive changes in consumer behavior and market structure.
Brand is the deepest moat of an enterprise.
18.Brand is the core competency, which determines the ability of the enterprise to make money in the long run.
Judging the value of an enterprise is often not to see how much money it can make now, but how much money it can make in the future, so the index to measure the value of the enterprise is its core competitiveness. The core competitiveness determines the ability of the enterprise to make stable, sustainable and low-risk profits, and provides certainty for long-term profits.
19.The height of the brand is the room for growth.
There are two main growth paths for enterprises:
One is **, which may be effective in the initial stage, and if it is promoted, it will become not promoted
One is to rely on traffic, seizing the traffic dividend is also effective in the initial stage, but the traffic cost will be higher and higher in the future, the ROI will gradually decrease, and the dividend will eventually be gone. There's only one way to grow and make a profit: build a brand.
20.For a company to create exponential growth in the future, it needs to find and adhere to the compound interest curve of the brand.
Many companies only care about continuous change, but forget the essential problem: "repetition + 'addiction' + long-termism" is the core meaning of business. Of course, before repeating, we should choose, judge, and measure what is worth repeating. Once found, it is necessary to penetrate it without hesitation.
21.Brand strategy needs to coordinate all resources to establish the most core value identity in the minds of users.
Brand strategy needs to be focused and subtracted in non-core areas. But it is not enough to only do subtraction, it is more important to use these resources in the focus to do addition after subtraction has released resources. Addition on focus is more difficult than subtraction and requires more creativity.
The essence of long-termism.
It's constantly going through small cycles.
22.The essence of long-termism is not to cross large cycles, but to constantly cross small cycles.
To adhere to long-termism is to have the ability to go through small cycles, see through big cycles, and act accordingly. By continuously transmitting signals to consumers, new consumer brands go through the small cycle from product to brand, from competitor to category, and from cross-category to scene, and finally establish their own unique cognition in the minds of consumers. The principle of transmitting signals to consumers is: the signal source should be strong, the signal coverage should be wide, and the signal should not be interrupted.
23.The more you try to take shortcuts, the easier it is to take long detours.
The core strategy of an enterprise is to grasp the right direction and do the right thing. Companies that just want to make a quick buck usually come and go quickly, try to take shortcuts, take shortcuts, and often end up taking long detours. True long-termists never disdain to take shortcuts, but only to lay out the big picture steadily.
24.The entrepreneur's main time should be spent on things that generate compound interest.
Drucker once said, "The biggest difference between effective managers and others is nothing but their management of time." "Some managers are too diligent tactically, do too many things that don't have cumulative value, and constantly play with platforms, algorithms, and uncertain markets, only to get busier and more anxious, because they are not busy with things that can bring compound interest.
25.The "cause" of opportunism cannot grow into the "effect" of long-termism.
Many founders often talk about long-termism, but in fact, it is more common to be opportunistic, doing whatever is hot, and tired of chasing the wind. Focus is the way to success, many people are always worried that there will be bad results, in fact, the most afraid is not to plant the "cause" well. "Cause" determines the output of "effect", and what kind of heart you do with will reap what kind of "fruit".
26.Only by adhering to long-termism can we jump out of involution.
Short-termism is to respond to short-term with short-sightedness, while long-termism is to see what is noisy, bubble, and murmur in the midst of change. Only by thinking about what you want and what you don't want from a long-term perspective can you have concentration in your heart, and only after you have concentration can you carry out deep thinking, and make every action done by the enterprise have consistency and continuity.
27.The choice between short-term and long-term is actually a process of resource allocation.
Short-term behavior is to invest resources in the present and react passively to changes in the environment;Long-termism, on the other hand, is to invest resources in the future and take the initiative to shape one's own destiny. Resources are always limited, and where you allocate them, you will reap the results.
Contents**: Advantage article.
Huaxia Cornerstone Management Review.